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People's Daily Online>>Opinion

China's economy to remain beacon and engine in 2012


11:43, January 01, 2012

BEIJING, Jan. 1 (Xinhua) -- China's economy will not break. Instead, it will sustain its robust vitality and remain a beacon of hope and an engine of growth for the still fragile world economy in 2012.

Some Western analysts, including Nobel Laureate Paul Krugman, who is known not only for his economic insights but for his harsh judgement on China's economy, recently warned of a possible crash of the Chinese economy in the near future.

They claimed that slowing growth and declining stock and commodity prices were signals that the country's property bubble was set to burst.

Such warnings, however, are simply far-fetched and do not reflect the reality of China's economy.

At the nadir of the 2008 financial crisis, China was among the first countries to bounce back. In 2009, China reached a growth rate of 8.7 percent, outperforming not only developed countries, whose economies dropped 3.2 percent, but also emerging ones, which enjoyed an average growth of 2.4 percent.

China's economic growth, though on a slower track recently, is still expected to reach 9 percent in 2011, contrasting starkly with the anemic growth in Europe and the United States.

Those who warned of an economic collapse of China also underestimated the Chinese government's capacities to avert financial risks.

China has in its arsenal a powerful and flexible tool of macroeconomic regulation which allows the country to take effective measures to avoid risks in the property sector.

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Leave your comment3 comments

  1. Name

Pat at 2012-01-0274.177.65.*
Well Done! Well stated with crystal clear intent! Good energy around the world!
Todd at 2012-01-01108.37.21.*
Slow, steady, and balanced growth.
PD User at 2012-01-01203.97.220.*
Paul might be an expert in economicbut only on western economic. China is the inventor of using paper money and finance thousands of years ago so when come to economy China had been the most advance and biggest in the 18 of the last 21 centuries. Can Paul understand the invisible part of China economy? China will remain robust and sole economic engine for the world in 2012 and beyond for a long time.

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